Cas pratiques

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Their situation

A few years ago, Rémi and Johanne purchased a house at a time when both of them had steady and well paid  jobs. They have two cars, one is leased and the second one is paid for but has  a low resale value.  Other than their residence with a mortgage balance that corresponds to its market value, the couple has few debts other than credit cards and a 20.000 $ line of credit .

A few months ago Johanne lost her job and she does not think she will be able to find a new one any time soon. Since then, Rémi’s earnings are not sufficient to cover monthly expenses as well as the mortgage payments on their residence. As for the credit cards , the line of credit and the leased vehicle, no payments have been made ever since Johanne lost her job.

Rémi and Johanne are getting calls from their creditors and recovery agencies asking for payments and they are afraid of losing their residence, something they want to avoid as much as possible. They decide to meet with us to find out if we knew of any possible solutions to their financial problems.

Meeting with a trustee

The meeting (free and confidential ) helps in reassuring Rémi and Johanne. After discussing and exchanging on different possible solutions ( voluntary deposit, consolidated loan, consumer proposal, bankruptcy), it is obvious that they no longer can pay their credit cards, line of credit and vehicle monthly terms, but they would like to keep their residence. They decide to declare bankruptcy  in order to solve their financial problems.


We prepare and set a bankruptcy in motion for Rémi and Johanne the outcome of which is as follow :

Residence :
The trustee notifies the financial institution of Rémi and Johanne’s bankruptcy and of their wish to keep their residence while continuing the mortgage payments ; law allows  to keep a residence if the monthly payments are made.

Leased  vehicle :
The return of Johanne’s vehicle to the leasing company .

Furniture  in the residence :
Rémi and Johanne keep their furniture.

Credit cards, line of credit and due balance on the leased vehicle :
Creditors are notified of the bankruptcy and send their proof of claim  to the trustee.

The bankruptcy has ended the financial pressure they had to bear, they now live on a tight budget but are able to balance it and can finally get on with their life. Respecting their commitment determined according to the rules of the Superintendent of bankruptcy and by attending two consultation sessions provided for, they are released from their debts.

The consultation with a trustee helped Rémi and Johanne find a solution to their financial situation allowing them to maintain their residence and end the financial pressure under which they lived for so long.

This is of course a fictitious situation but one  we often encounter. Our approach will help you understand the pros and cons of bankruptcy and determine if this is the right solution for you.